GCC Markets Anemic, Fundamentalists Celebrate in Tehran, Saddam Sentenced

Gulf Markets Tank:
The Saudi market continued its sharp decline that started the week on Saturday (Nov. 4), the first trading day of the week. The market index today broke 8500, its lowest level of two years (last recorded on January 2005). The index closed the day at 8427.22. The decline has been across the board, with few exceptions. Some traders claim that large funds are dumping ‘quality’ shares that are normally part of their core investments, and these include telecoms, industrials and financials. Among the new measures demanded by traders are easing rules for margin lending, as well as activating the role of market makers. Others attribute part of the decline to the delay by some listed companies of implementing new accounting and disclosure requirements of the Exchange Authority that were initiated on January 2006. Most traders and investors seemed stunned by the continued decline, and some have started to predict possible dire consequences on the loan portfolios of banking system. It is likely now that all new public offerings (IPOs) will be halted or severely curtailed. Other GCC markets also declined in recent weeks, but they improved sightly Wednesday.

Fundamentalist Fiesta in Tehran:
In Tehran a few thousand demonstrators, led by some Iranian politicians, mullahs, and other such exciting personalities, recently commemorated the 1979 storming and hostage-taking at the old United States embassy. The fundamentalists who rule Iran apparently consider that diplomat-napping one of the major achievements of the revolution. If there are other major achievements of the Islamic Revolution over the past 27 years, they must be well hidden and kept as state secrets, for they are not apparent to most others, and they are especially not apparent to the Iranian people. To cap the festivities, some mullahs and demonstrators burned the American and Israeli flags, as well as some unflattering effigies of President Bush. It is understood that the American and Israeli flags are now the second and third most popular flags in Iran, after the national colors of course. It is reported that the same two flags are also quite popular in certain regions of Pakistan as well. In the end the revelers in Tehran all sang a rendition of the mullahs’ all-time favorite hit “Marq bar Amrika, Marg bar Israel..…Death to America, death to Israel.” The Iranian and Arab media, however, did not report if they sang it to the tune of Auld Lang Syne.

Saddam Sentenced in Baghdad:
Saddam Husseim was sentenced to death today. Kurdish towns were quietly relieved, Shia' towns erupted in celebrations, and Sunni towns erupted in angry protests. Looks like a very regional and con-federalist set of reactions.


Cheers

Mohammed